A number of insiders bought Trinseo PLC (NYSE:TSE) stock last year, which is great news for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Trinseo PLC's (NYSE:TSE) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Trinseo
The Last 12 Months Of Insider Transactions At Trinseo
The Independent Director Jeffrey Cote made the biggest insider purchase in the last 12 months. That single transaction was for US$318k worth of shares at a price of US$31.76 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$29.16). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$470k for 15.19k shares. But they sold 6.90k shares for US$170k. Overall, Trinseo insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Trinseo Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Trinseo. In total, Independent Director Philip Martens dumped US$170k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Trinseo
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Trinseo insiders own about US$8.4m worth of shares (which is 0.8% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Trinseo Tell Us?
An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. But we'd like it if insiders owned more stock, overall. So overall it's hard to argue insiders are bullish. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in Trinseo.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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